Efficacy of China's Capital Controls: Evidence From Price and Flow Data

Ma, Guonan; McCauley, Robert N.

doi:10.1111/j.1468-0106.2007.00392.x

“…Although these capital control measures are deemed effective, they do not eliminate all illicit flows. Cheung and Herrala (2014), and Ma and McCauley (2008) for example, show that China's control of cross-border capital movement is porous. While control measures deter money from moving across borders, people find ways to circumvent these barriers.…”

Section: Introductionmentioning

confidence: 99%

China's capital flight: Pre- and post-crisis experiences

Cheung

¹

,

Steinkamp

²

,

Westermann

³

2016

Journal of International Money and Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

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“…Ma and McCauley (2008) and Cheung and Herrala (2014), for example, show that the PRC's capital controls have not been watertight but remain substantially binding. The evidence based on offshore RMB (CNH) and onshore RMB (CNY) exchange rates give a different impression.…”

mentioning

confidence: 99%

The Role of Offshore Financial Centers in the Process of Renminbi Internationalization

Cheung

¹

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractThe People's Republic of China (PRC) has been quite aggressive recently in promoting the international use of its currency, the renminbi. Historical experience suggests that an active offshore market is essential for a global currency. Indeed, anecdotal evidence affirms the role of offshore markets in pushing the renminbi currency to the world. One should not, however, overplay the contribution of offshore markets. While offshore markets offer the opportunities to experiment with the global use of the currency, the overseas acceptance of the renminbi is ultimately determined by both internal and external economic forces, and geopolitical factors. With its relatively small size, the offshore renminbi is not likely to pressure the PRC and alter its financial liberalization policy. A well-organized offshore renminbi market will complement the PRC's renminbi internationalization policy, but it is not possible to raise the currency's global status beyond the level justified by its economic and political attributes.

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“…In general, see, for example, Aliber (1973), Dooley and Isard (1980) and Frankel and Engel (1984), and in the content of China, see, for example, Cheung et al (2003) and Ma and McCauley (2008). 8 of F t and CID t .…”

mentioning

confidence: 99%

Capital Flight: China’s Experience

Cheung

¹

,

Qian

²

2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

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Efficacy of China's Capital Controls: Evidence From Price and Flow Data

Cited by 107 publications

References 16 publications

China's capital flight: Pre- and post-crisis experiences

China's capital flight: Pre- and post-crisis experiences

The Role of Offshore Financial Centers in the Process of Renminbi Internationalization

Capital Flight: China’s Experience

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